aised over how the pension fund is being managed. Some employees are upset that CEA Fund Managers uses a diversified asset allocation strategy for its investment. Prepare a short report which explains: a. The importance of strategic asset allocation, b. Three (3) benefits of using this approach, c. Three (3) factors that
The company’s pension plan is managed by CEA Fund Managers, a leading provider of
pension services. It is a defined contribution plan, where the employees’ contributions are
matched by the employer. Each employee had to choose one of the following investment
options for their individual plans:
a. Preferred Accumulator (PA): Short-term focus
b. Balanced Accumulator (BA): Medium-term focus
c. Select Accumulator (SA): Long-term focus
However, there has been some concern raised over how the pension fund is being
managed. Some employees are upset that CEA Fund Managers uses a diversified asset
allocation strategy for its investment.
Prepare a short report which explains:
a. The importance of strategic asset allocation,
b. Three (3) benefits of using this approach,
c. Three (3) factors that could affect how assets are allocated.
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